Home » Finance » Loans

Some Of The Reasons You May Need To Consider A Commercial Loan

Aug 17, 2007
Commercial loans are taken out as a variety of different types and terms. Often business need to take out loans in order to keep their company in operating order. This is a very common practice.

Banks are the main provider of commercial loans to businesses. Although businesses occasionally need to finance the entire operating costs they are generally considered short term loans in that they will be paid in full within a very short length of time.

Occasionally companies need to borrow funds for seasonal items such as holidays and sports seasons. The most common reason for this type of loan is to boost inventory for items needed at a time when supply and demand is greatly increased. For instance, as during the Christmas holiday season, at this time of the year a company may need increased inventory due to increased sales potential. Stores that which sell the majority of their inventory during the Christmas season commonly take out seasonal commercial loans. These are intended specifically to insure they will have an ample supply of inventory on hand to sell. Without such loans it would likely be very difficult to purchase enough inventory to supply the demand otherwise.

Another common type of commercial loan is the short term loan. These types of loans are often just as the name implies, short term. Short term loans may be necessary for a variety of reasons, commonly they are used for companies needing to purchase or pay for bulk shipments that will be sold later. These shipments have been bought in bulk for a lower cost or perhaps in anticipation of a large upcoming sale. These types of loans are sometimes taken out many times a year but also repaid quickly with little interest accrued. These types of commercial loans are very helpful especially to small businesses that may lack or have little capital and profit.

Permanent capital loans are yet another common type of commercial loan. These types of loans are often used in start up or even property purchases for businesses that anticipate a good rate of growth and revenue. These are longer in term and accrued interest for the borrower. The lenders often expect significant amounts of collateral to receive these types of commercial loans.

Regardless of the type of business you may choose to invest in most companies have at least one commercial loan that is current. Commercial loans make it possible for new businesses to get up off the ground and operating better. Some of the reasons companies may take out a commercial loan vary but are generally for reasons such as to increase inventory due to anticipated sales, start up and land purchase.
About the Author
Gregg Hall is an author living in Navarre Beach, Florida. Find more about this as well as commercial loans at http://www.commercial-loans-now.com
Rating:
Please Rate:
(Average: Not rated)
Views: 116
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources